Monday, April 20, 2015

how Do you Get Loss

If you want to be a professional forex trader, you should have known the basic reasons of loss in forex trading. If is very simple to identify for you if you have been trading in the trading market for six or more months. You can find out many causes of getting loss if it is asked to you.

However now i am trying to remind as you know.
(a) Using high leverage in trading.
(b) Lack of knowledge in forex trading market.
(c) Lack of Patience during trading hours.
(d) Having greed in trading.
(e) Lack of proper education relating forex trading market.
(f) Lack of analytical ability
Any trader can tell you one by one if you ask him in this way. However there may have many other reasons for getting loss in forex trading market.Although Many traders being informed about these reasons they can not make profit consistently.
Obviously there is something more except above. Now i would like to share you something which i have already observed during my trading hours. I think big portion of new traders can not find out the exact reasons that, "Why is he making loss consistently?". Even many advanced traders do not care of the reasons.

Now i am trying to disclose three reasons respectively below:
(1). Trying to recover the lost money immediately.
(2). Placing trade for retracement(false) at top of a trend.
(3). Placing trend against existing trend.

Every trader should avoid the three reasons during his trading hours. These are very critical problems for a trader. To be a professional trader you must overcome the barriers.

Now i am trying to illustrate the problems more elaborately.

(1) Trying to recover the lost money immediately:
Everyone wants to get back his lost money. For this reason, he get hurry to trade randomly more & more. As he is a new trader so he does not care to find out the proper point to place his trade. I also felt like this & it also happened to me. As far as i know. it generally happened to many new traders.
The trader who lost his money usually become crazy to recover the lost money. But Eventually he loses more money in this way. Even market may be in a critical situation but he usually become unable to realize it. Honestly saying forex trading market is not for them who are adamant in trading. A trader can be able to get his trade successful if he is able to think every thing neutrally in his own way. so nobody should be adamant in case of trading. If you want to be a professional trader in forex market you may have to forget some profit. Otherwise it may be very difficult to learn the proper education even profit. So be careful about the secret which makes you loser.

(2) Placing trade for retracement(false) at top of a trend: It is really amazing it you can make some profit from top of a retracement. But it is really a big risk. If anyone want to place trade in this way to make profit, i prefer to suggest him to go any casino. I think casino may be a better place to make money in this way.

Every new trader should avoid to trade at top of a trend to place trade for retracement. In this situation you should wait for exact retracement. You need not to take A to Z profit. Please do not be hurry in trading hours. You must have to be confirmed that the existing trend has been terminated. After getting confirmation you can place your trade confidently. Even you can minimize your trading risk in this way.

(3) Placing trend against existing trend: It is saying that trend is the best friend in any foreign exchange business. Honestly saying i believe it seriously. I had to lose my many trade for placing trade against the existing trend. Trend can be found on the basis of trading time-frame. If you trade in 15M/1H time-frame then you have to find your trading trend in 4H trading time frame. In this way you have to fix your trading trend to trade efficiently. There is no mercy if you made such mistake. So you have to follow the trend in order to get successful trade.




Finally it can be said that it is very usual to make mistake in forex trading. My illustrated topic is very simple to understand but it is little bit difficult to follow properly. Otherwise every trader could make money by trading in forex market. But really it is not possible to make profit all.

1 comment:

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